Ukraine is one step away from bankruptcy. “Financial space is much needed”

This suspension – from governments and private lenders – is worth 15% annually, the weekly notes. Ukrainian GDP, and if payments are required, they will be the second largest state expenditure after defense.

“The Economist” writes that the International Monetary Fund wants Ukrainian Finance Minister Serhiy Marchenko to negotiate the cancellation of part of the debt, but it is impossible to conclude an agreement in such a short time. In June, he proposed to creditors an arrangement that would reduce the present value of the loans by 60 percent, but they responded that they believed it would be 22 percent. Considered very reasonable.

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“Ukraine desperately needs fiscal space”

The weekly assesses that if Ukraine fails to meet its obligations, it will demonstrate private investors’ disturbing lack of confidence in Western commitment and could spell disaster for the country’s reconstruction in the long term.

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